Krim Co. has a deficit in retained earnings of $342,000. As part of a quasi-reorganization, assets...
Krim Co. has a deficit in retained earnings of $342,000. As part of a quasi-reorganization, assets will be written down by $36,000. There is a balance in common stock of $100,000 and a balance in paid-in capital--excess of par of $550,000. AFTER the quasi-reorganization, what will be the balance in paid-in capital--excess of par?
Homework Answers
| Retained earnings deficit | 342000 |
| Add: Assets write down | 36000 |
| Total deficit | 378000 |
| Balance in paid-in capital--excess of par | 550000 |
| Less: Deficit | 378000 |
| Balance in paid-in capital--excess of par-after the quasi-reorganization | 172000 |
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Krim Co. has a deficit in retained earnings of $342,000. As part
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14
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appeared as follows (in condensed form):
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14
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